Pirelli & C — Investor Presentation 2022

May 10, 2022

1Q 2022 Financial Results

1Q 2022 Financial Results

May 10th, 2022

Disclaimer

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Rounding. Due to rounding, numbers presented throughout this Presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

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Giorgio Luca Bruno, the manager in charge of preparing the corporate accounting documents, declares that, pursuant to art. 154-bis,paragraph 2, of the Legislative Decree no. 58 of February 24, 1998, the accounting information contained herein correspond to document results, books and accounting records.

Non-IFRS and Other Performance Measures

This Presentation contains certain items as part of the financial disclosure which are not defined under IFRS. Accordingly, these items do not have standardized meanings and may not be directly comparable to similarly-titled items adopted by other entities.

Pirelli management has identified a number of "Alternative Performance Indicators" ("APIs"). These APIs (i) are derived from historical results of Pirelli & C. S.p.A. and are not intended to be indicative of future performance, (ii) are unaudited non-IFRS financial measures derived from the Financial Statements, and (iii) are not an alternative to financial measures prepared in accordance with IFRS.

The APIs presented herein are EBIT, EBIT margin, EBITDA, EBITDA margin, net income and net income margin.

In addition, this Presentation includes certain measures that have been adjusted by us to present operating and financial performance net of any non-recurring events and non-core events. The adjusted indicators are EBITDA adjusted, EBIT adjusted and net income adjusted. In order to facilitate the understanding of our financial position and financial performance, this Presentation contains other performance measures, such as Net Financial Position, Operating Cash Flow, Net Cash Flow before Dividends and extraordinary Operations, Net Cash Flow before Dividends, Net Cash Flow, CapEx (Capital Expenditure), Liquidity Margin and ROIC (Return On Invested Capital).

These measures are not indicative of our historical operating results, nor are they meant to be predictive of future results.

These measures are used by our management to monitor the underlying performance of our business and operations. Similarly entitled non-IFRS financial measures reported by other companies may not be calculated in an identical manner, consequently our measures may not be consistent with similar measures used by other companies. Therefore, investors should not place undue reliance on this data.

Agenda

Key Messages

> 1Q 2022 Results supported by:

• strengthening in High Value (market share gain in Repl. ≥18"; increasing focus on O.E. ≥19" and EV)
• top-of-industry price/mix, covering 1.2x raw mat. & inflation
• operating cash flow in line with 1Q'21

> 2022 global scenario becoming more volatile:

• lower GDP growth and higher inflation due to supply chain disruptions
• 2022 Car tyre outlook now factoring in lower O.E. production, China demand slowdown in 1H and Russia crisis
• Car ≥18" market growing high-single-digit, ~7x vs. ≤17" market (~4x in Feb.)
• confirmed solid Tyre pricing environment in response to raw mat. and inflation

> Pirelli strategy and 2022 targets update:

• quickly reacting to mitigate the external scenario:
  • o price/mix and efficiencies to more than cover raw mat. and inflation
  • o dynamic contingency plan on Russia-Ukraine crisis
  • o working to improve cautious profitability target, impacted by Ukraine conflict and China slowdown
• strong commitment to deleverage through a solid Net C.F. bef. dividends generation (~€450 million)
• > More challenging commitment to the fight against climate change, validated by SBTi¹

23

From March we put in place a set of measures to mitigate the impact of the Russia-Ukraine war

Russia main KPIs - FY'21	Area	Issue	Actions taken, compliant with sanctions
Revenues1 : €162M (~3% of Group Sales) >		Export ban of selected raw	Alternative Suppliers
		mat. to Russia from EU	Increased Stock level
EBIT adjusted: €29M (~3.5% of Group adj. EBIT) >	Manufacturing	From 2H, no export of	European imports of Standard products
Net Financial Position2 : ~€77M only in Rubles >		finished products to Europe due to sanctions	sourced from other low-cost plants (Romania and Turkey)
> Fixed assets: ~€170M		Capacity saturation	Stabilized production focusing on local demand
> ~2,300 headcount (>80% blue collar), ~8% of Group		Availability of transport
> ~1,200 points of sale, all franchising (no equity)	Logistic	from/to Russia	Logistic service providers diversification to ensure supply continuity
Pirelli's manufacturing footprint in Russia		Financing continuity	New credit line with local bank
> 2021 tot capacity: ~8 million Car tyres,	Finance
(~85% Std., ~15% H.V.)		Safety	Confirmed Health and Safety investments
Kirov, Car Std. > % of exports: ~50%, Voronezh, Car Std. / H.V. mainly Std. and mainly to Europe	People	Salaries and Social Services	No production interruption to guarantee the funding of Employees Salaries & Social Services

1Q 2022 Results highlights

Solid quarterly delivery in a challenging environment

€ million

Net Income Net Financial Position

Agenda

Outperf. in ≥18" Repl. continues, driven by EU and N.A.; O.E. demand impacted by supply shortages, especially on Std.; PI trend in O.E. Std. reflecting Russia-Ukraine crisis and a more selective approach 1Q 2022 – Pirelli vs. market – outperforming in Repl., both in High Value and Standard

Source: Pirelli market estimates based on third party and associations of tyre producers market data

7 1Q 2022 Financial Results

2022 Strategy implementation: 1Q 2022 delivery in line with targets

main programs	2022 targets	1Q'22 main achievements
Commercial	• Focus on H.V. outperforming the market in ≥18" Replacement • More selective approach to O.E. • Lowering exposure to Standard	• Car ≥18": +8% in line with market • Repl. +16%, +2pp vs. market • O.E. -1% vs. a flat market; higher focus on ≥19" & EV • Car Std. weight to ~40% (-3pp YoY) in line with FY target
Innovation	• Expanding homologations in ≥19" and Specialties • • Product renewal (+10 new Regional lines)	• ~90 new homologations, ~90% ≥19", ~30% Specialties, mainly EV • 2 new SUV products: the New Scorpion (a worldwide Summer product) and the New Scorpion All-Season SF2 (for EU market)
Competitiveness	• Progressing with Wave 2 efficiencies plan (€150M gross efficiencies)	• €29M gross savings, ~20% of FY target, consistent with projects targets • Price/mix covering 1.2x times raw mat. and inflation
Operations	• Increasing High Value capacity (+2M pcs, to 53M pcs, ~72% of tot. Car capacity) • Further improving capacity saturation (>90%)	• Start of cycling production in Bollate (ITA) • Capacity saturation >90% (~95% on High Value) • Halt of Russian CapEx and re-allocation to other Regions

Commercial Program delivery in 1Q 2022

Strong over-performance driven by ≥19" & Specialties

Innovation Program 1Q 2022 (1/2)

New Scorpion tyres: a renewed range for SUVs with a strong focus on EV and hybrid vehicles

safe and silent performance for sustainable mobility an adaptive tyre with stronger tread blocks

1 Tread Pattern optimized for higher efficiency and comfort

• 2 Narrow flat car profile for an improved braking performance
• 3 Compound: Full Silica lower transition temperature tread for a better wet handling and braking with a long lasting performance

1 Zig Zag central Groove excellent in aquaplaning and wet handling

• 2 3D diamond sipes adapting during braking and snow conditions
• 3 Compound: new combination of polymers to maximize performance in a wider temperature range

Both products are available with different technologies and certified with the TÜV SÜD performance mark¹

Scorpion range has the highest 'Elect' homologations in Pirelli: ~50% of the total homologation target

• 10 1Q 2022 Financial Results • For the New scorpion Summer following tests carried out in Jan / Feb 2022 with tyres size 235/55R19 – 255/55R18
  • For the New Scorpion All Season F2 following tests carried out in Jan / Feb 2022 with tyres size 235/60R18

Innovation Program 1Q 2022 (2/2): strong focus on EVs

Pirelli EV: 2022 expectations

0

20

40

Latest Pirelli Elect achievements

• Pirelli's Elect won the prize for "Best Technological Innovation of 2021³ " >
• Pirelli awarded as "The Top Performance seal for its tyre⁴ " >

1. Trade Homologation Catalogue @ Apr-22 only BEV & PHEV included; 2. source: German Product List (Pricat) @ May-22;Since Homologations and Propulsion are not declared, EV related IP5 is inferred from: O.E. markings (+, NF0, T0, T1), Product ( Pilot Sport

11 1Q 2022 Financial Results EV, Ventus S1 EVO 3 EV), Product description, Size, Technologies (Elect, Enliten); 3. assigned at the 3rd edition of Los Premios Hevea de la Industria del Neumatico (Spain); 4. From electricar magazine, issued in Apr / May 2022

Competitiveness program progress

1Q achievements in line with expectations and consistent with programs quarterly targets

		2021	2022 E
		FY ACT	Focusing on:	FY GUI	1Q'22 ACT
	Product Cost		 Modularity  Design speed and virtualization	~40% in 1H
	Manufacturing		 Footprint optimization  Industrial IOT and flexible factory	mostly in 2H
	SG&A		 Logistics network redesign and service differentiation  Procurement rationalization	mostly in 2H
	Organization		 Digital Processes and Organization transformation	50% in 1H
Total Gross Impact as % of baseline		~€155M ~4.0% of baseline '20		~ €150M ~3.3% of baseline '21	~ €29M ~0.6% of baseline '21

1Q 2022 Net Sales bridge

Record price/mix and further enhancement in High Value

Solid Car ≥18" Replacement performance in 1Q (+16% vs +13% in 4Q) notwithstanding price increases

1Q 2022 adjusted EBIT bridge

Profitability improvement supported by internal levers offsetting the negative external scenario

€ million

Price/mix covering ~1.2x raw mat. and inflation headwind (raw mat. + infl. = 11% of Sales) driven by oil and energy prices >

> Competitiveness program in line with expectations and consistent with quarterly delivery

1Q 2022 Net Income bridge

Earnings driven mainly by improving operating performance and lower non-rec. / rest. costs

1Q 2022 Cash Flow and Net Financial Position

Cash Flow trend stable YoY and in line with business seasonality

> Lower CapEx vs. 1Q'21 due to different allocation in terms of timing and geography given the volatile external scenario

> Better operating performance and lower investments in 1Q'22 are offsetting the higher Δ Working Capital absorption (e.g. higher inventories at 21.8% of Sales, +1.3pp vs. 2021 year-end mainly in raw mat.)

2,000

2,200

2,400

2,600

2,800

3,000

3,200

3,400

3,600

Total Gross Debt structure as of March 31st 2022

Sound liquidity position, smooth maturity profile and Investment Grade credit rating optimize cost of funding in volatile markets

€ million

17 1Q 2022 Financial Results 1. including assets at FV through P&L; 2. Based on average gross debt and hedging of intragroup financing

Agenda

2022 macro outlook deteriorates vs. Feb-22 assumptions

Geopolitical tension and COVID in China further impacting global supply chains, inflation and GDP

19 1Q 2022 Financial Results 1. Source: Pirelli Insight GDP and inflation growth estimates based on third party data (World GDP at purchasing power parities)

2022 Car Tyre market: a more cautious view on Car prod. (~flat vs. +6% in Feb) and on China

High Value outperformance vs. Standard confirmed

WORLD Car tyre market

^{265 279 302 299} 1,540 2019A 1,275 1,146 2021A 1,172 2022E (Feb guid) ≤17" 1,133 2022E (May guid) ≥18" 1,425 1,474 1,432 (million pcs) (million pcs)

• ≥18": O.E.: chip supply normalizing in 2H; China Repl. trend compensated by N.A
• ≤17": O.E. supply shortages, Russia-Ukraine crisis, China slowdown

• lockdowns triggered a slowdown of demand from March
• recovery starting in 2H'22, mainly driven by O.E. & H.V.

Pirelli FY 2022 targets update: price/mix & efficiencies more than offsetting raw mat. & inflation

Ukraine conflict and China slowdown affecting profitability; solid NCF target confirmed

€ billion	2021 A	2022 E
		Target @ 23-Feb-22	Target @ 10-May-22	• Volumes ~+0.5%÷~+1.5% High Value ~+5.5%÷~+6% 
Net Sales	5.33	~5.6 ÷ ~5.7	~5.9 ÷ ~6.0	 Standard ~-5%÷~-4% • Price/mix ~+10%÷~+11% • Forex ~flat
adj. EBIT margin	15.3%	~16% ÷ ~16.5% Russia sensitivity ~€0.89B	~15%	cautious target factoring: • Russia-Ukraine impact (lead to Feb sensitivity, adj. EBIT
CapEx (% of Sales)	0.35 (6.5%)	adj. EBIT ~0.39 (~7%)	confirmed (~6.5%)	€0.89B) • China slowdown impact partially compensated for by
Net Cash Flow bef. Dividends	0.43	Russia ~0.45 ÷ ~0.48 sensitivity: ~€0.45B	~0.45	Americas improvement
Net Financial Position NFP / adj. EBITDA	2.91 2.40x	~2.6 ≤2.0x	confirmed
ROIC1 Post taxes	17.6%	≥19%	~19%

Agenda

Pirelli leading position in Sustainability rankings & initiatives

Major ratings (May-22)		last update	score	positioning in the reference sector = leading the ranking or initiative
		2021	77	ATX Auto Components
		2022	Gold class	Max score
		2021	A	Max score
		2021	AA	6% of the Auto comp. companies in AA
		2021	4.5 / 5	Auto & Parts / Tyres
		2021	LEAD	Max score
		2021	10.3	Auto Components
		2021	Platinum	n.a.
		2021	69	Auto Components

Key Car tyre market trends: Europe

Key Car tyre market trends: North America

25 1Q 2022 Financial Results Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement; 1. N. America Replacement includes imports

Key Car tyre market trends: Asia Pacific

Key Car tyre market trends: Russia, Nordics, MEAI / South America

27 1Q 2022 Financial Results Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement; 1. South America Replacement restated to include Brazilian imports

Pirelli financial results highlights

€ million		1Q 2021	1Q 2022	Δ YoY
	Revenues	1,245	1,521	+22.2%
	Organic Growth1			+19.0%
	High Value Revenues (% on total)	72.6%	73.7%	+1.1 pp
	adj. EBITDA2	267	333	+25.0%
	Margin	21.4%	21.9%	+0.5 pp
	adj. EBIT3	169	229	+35.4%
	Margin	13.6%	15.0%	+1.4 pp
	PPA amortization	(28)	(28)
	Non rec. & restr. costs	(43)	(7)
	EBIT	97	193
	Margin	7.8%	12.7%
	Results from Equity Inv.	(0)	1
	Financial Income (Charges)	(40)	(44)
	EBT	57	150
	Tax Rate	26.4%	26.7%
	Net Income	42	110
	Net Income adjusted4	94	136

Pirelli balance sheet

€ million		31-Mar-2021	31-Dec-2021	31-Mar-2022
	Fixed assets	8,871	8,912	8,911
	Inventories	875	1,092	1,222
	Trade receivables	814	659	908
	Trade payables	(914)	(1,626)	(1,197)
	Operating net working capital	775	125	933
	% of Sales1	17.2%	2.3%	16.6%
	Other receivables / payables	54	1	111
	Net Working Capital	829	126	1,044
	Sales1 % of	18.4%	2.4%	18.6%
	Total net invested capital	9,699	9,038	9,955
	Equity	4,633	5,043	5,294
	Provisions	1,155	1,089	1,081
	Net Financial Position	3,912	2,907	3,580
	Total financing and shareholders' equity	9,699	9,038	9,955

Pirelli cash flow

€ million		1Q 2021	1Q 2022
	Adjusted EBIT1	169	229
	Depreciation & Amortization (excl. PPA amortization)	98	105
	Capital expenditures	(90)	(49)
	Rights of use (IFRS 16)	(27)	(8)
	Change in working capital / other	(717)	(842)
	Operating Cash Flow	(567)	(565)
	Financial income / (expenses)	(40)	(44)
	Taxes paid	(37)	(33)
	Cash-out for non recurring items and restructuring costs	(29)	(24)
	Exchange rates difference / other	16	(8)
	Net cash flow before dividends & extraordinary operations	(657)	(673)
	Financial asset disposals / (acquisitions)	4	-
	Net cash flow before dividends	(654)	(673)
	Dividends paid	-	-
	Net cash flow	(654)	(673)

30 1Q 2022 Financial Results

Raw Material costs trend and mix

main raw materials price trend

Pirelli 1Q 2022 mix (based on purchasing cost)

Pirelli manufacturing footprint

1. 49% Joint Venture with the Hixih Group